Mack Seeks Concessions To Keep New Plant In Area

November 13, 1985|by TOM MOYLAN, The Morning Call

Mack Trucks Inc. is seeking concessions from its unionized employees by Dec. 1, holding out the promise that it will build its new assembly plant within 50 miles of Allentown, say rank-and-file members.

Those employees, who asked to remain unidentified, said the give-backs would include wage, health and vacation benefitcuts, the elimination of some jobs, restriction of some bumping rights and a no-strike provision.

Mack President John Curcio declined to comment on the reports, saying "We have an agreement with the union that there is a blackout during these discussions. I will say nothing further."

Eugene McCafferty, president of Local 677 of the United Auto Workers, said he had no comment on the reports and could neither confirm nor deny them. He referred questions to William McCullough, Macks' vice president of corporate affairs.

According to the sources, Mack's proposals were presented to workers at a union membership meeting Monday night. They said the company wants its present contract with Local 677 renegotiated to include the following concessions:

- Wage and benefit cuts amounting to $3.85 an hour or $154 a week.

- All wage increases to be replaced by a cost-of-living raise.

- A $2,000 cap on profit sharing.

- No changes in existing pension terms for the life of the contract.

- The existing contract will be divided into three or four agreements, covering the Allentown assembly plant (5-C), the new assembly plant, and offices and engineering personnel.

- The contracts will be in force for seven years from 1986 to 1993 instead of the existing three-year pact.

- Restrictions on the ability of workers at one plant to "bump" into positions at another plant.

- The elimination of the past practices clause, a kind of catch-all clause which protects traditional work conditions which are not specifically addressed in the contract.

- A reduction of about 10 percent in the number of office personnel.

- A no-strike provision.

- An agreement not to reopen the contract before it expires except for wages if the company's earnings improve.

- A reduction in the number of shop stewards and union committeemen.

- The combining or reduction of job classifications which will mean pay cuts for some reclassified workers.

According to most of the sources, Mack has said it will guarantee that the new assembly plant will be built within a 50-mile radius of Allentown if the membership approves the concessions. Another source said, however, that the company offered no promises but said it will try to locate within a 50-mile area.

One source said reaction to the proposal was about 50 percent for and 50 percent against.

Mack announced last month that it would replace its main assembly plant with a new, modern 70-truck-per day facility by mid-1987. It said it would decide on a location for the plant by the end of the year.

The 5-C plant employs between 1,800 and 1,900 workers. The new plant will reportedly require substantially fewer employees.

The Allentown-based truckmaker reported a $64.6-million loss last quarter and lost $56.2 million for the first nine months of the year.